BROADWATER COUNTY GROWTH POLICY PLAN COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

Transcription

1 BROADWATER COUNTY GROWTH POLICY PLAN COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY July, 2003

2 BROADWATER COUNTY GROWTH POLICY PLAN & COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY ADOPTED BY: Broadwater County Commissioners Jim Hohn Steve McCullough Elaine Mann PREPARED BY: Broadwater County Planning Board Virgil Binkley, Chairman Jorja Hensley Jenny Schauber Vince Vogl Dennis Williams ASSISTED BY: Jim Richard Business Services, Inc. White Sulphur Springs Melissa Tuemmler, County Planner Virginia Knerr, Chair, Broadwater County Development Corporation July, 2003

3 TABLE OF CONTENTS Page DEFINITIONS i SECTION I BACKGROUND 1 SECTION II BROADWATER COUNTY PLANNING ISSUES AND CONCERNS 33 SECTION III GOALS, OBJECTIVES AND POLICIES 43 SECTION IV IMPLEMENTATION STRATEGY 53 APPENDIX A APPENDIX B APPENDIX C PREFERRED RESIDENTIAL INDUSTRIAL/COMMERCIAL SITES IN BROADWATER COUNTY 64 SUMMARY AND ANALYSIS OF COUNTY-WIDE CITIZENS SURVEY 66 SUMMARY OF COMMENTS, QUESTIONS, OPINIONS EXPRESSED AT PUBLIC HEARINGS 76 RESOLUTION OF ADOPTION 82

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5 DEFINITIONS Broadwater County Development Corporation (BCDC): A private, non-profit organization formed for the purpose of promoting economic development and business growth in Broadwater County. The officers, board of directors, and committee members comprise county, city and school district officials, business owners and employees, health and medical care providers, representatives of banking and finance, agriculture, retail trade, industry, and travel/tourism. Capital Improvement Plan (CIP): A plan outlining where, when and how much a community or county plans to invest in major public facilities over the next 5-6 years. A CIP may address items such as roads and bridges, emergency service facilities and equipment, school and library buildings, sewer and water systems, solid waste disposal sites. Cluster Development or Clustering: Grouped houses or lots on part of a property while maintaining a large amount of open space on the remaining land. Commercial: A commercial use is any business, retail trade or activity selling goods or services. Comprehensive Economic Development Strategy (CEDS): A document certified by the U.S. Economic Development Administration for eligibility for that agency s programs. The document identifies a community s strengths, opportunities, constraints and weaknesses and sets forth goals, objectives, plans and strategies for fostering economic development and business growth. Conservation Easement: A voluntary agreement (Title 76, Chapter 6, Part 1, MCA) between a landowner and an agency or a qualified private tax-exempt organization, in which the landowner agrees to place restrictions on the type or level of development that may occur on his property. Density: The number of buildings or housing units on a particular area of land. Development Regulations: Regulations, limitations, or requirements adopted by a local governing body to regulate the character, quality or location of new development. Montana law prohibits land use regulations that regulates the production of agricultural and forestry products. i

6 Dwelling Unit: Any building or portion thereof providing complete, independent and permanent living facilities for one family. Emergency Services: Community services such as fire protection, law enforcement, ambulance services, quick response, search and rescue, flood and disaster relief. Emergency services are generally provided by local governments or private, nonprofit organizations. Flood: The water of any watercourse or drainage which is above the bank or outside the channel and banks of such watercourses or drainage. Flood of 100 Year Frequency: A flood magnitude expected to recur on the average of one every 100 years, or a flood magnitude which has a one percent chance of occurring in any given year. Floodplain: The area adjoining the watercourse or drainage that would be covered by the flood water of a flood of 100 year frequency. Goal: A goal is a broad, generalized expression of a commonly held community value regarding growth, development patterns and quality of life. Goals, as used in this policy, express the primary theme or general intent and direction of the policy. Growth Policy: (Pursuant to Chapter 76, MCA) A publicly prepared plan which describes current and future conditions of a community or county, outlines goals and objectives for land use and other features of community life, and recommends implementation measures designed to help achieve the goals. Industrial: Land uses and activities involving manufacturing, fabricating, or processing of goods and products. Infrastructure: Public facilities such as sewer and water systems, roads, bridges, and buildings. Lot: A parcel, plot or other land area with its own identity. Municipality: An incorporated city or town. Montana Department of Environmental Quality Minimum Standards: Minimum standards as set forth by the Division of Environmental Sciences of the Montana ii

7 Department of Environmental Quality, adopted pursuant to Title 76, Chapter 4, Part I, MCA. Objective: An objective is a narrowly defined expression of community intent. A goal may contain one or more objectives with each objective responsive to a particular aspect of a more broadly stated goal. Policy: A policy statement is a fairly precise statement of how a local government will exercise its discretionary powers and fiscal resources to achieve a specific goal. Planning Board: The Broadwater County Planning Board formed pursuant to Title 76, Chapter 1, MCA. Planning and Zoning District: A district formed pursuant to Title 76, Chapter 2, Part 1, MCA, by the county commissioners upon petition of 60% of the landowners within an area for purpose of enacting land use regulations on properties within the district. Property Taxation: The process of assessing and collecting property tax revenues based on the value of each property. Assessed Value: The appraised value of any private property as determined by the Montana Department of Revenue according to rules and guidelines. Mill: A unit of property tax assessment equal to one-tenth of a cent ($.001) that is levied against the taxable value of a property. Taxable Value: The value of property calculated by multiplying the assessed value by a tax rate set by the Legislature. Example: $50,000 x 3.6% = $1,800; $1,800 x 100 mills x $180 Assessed x Tax = Taxable; Taxable x Mill x Taxes Value Rate Value Value Levy Owed Public Facility: Any structure or facility constructed to serve the residents of a subdivision or community, such as parks, streets and roads, sidewalks, curbs and iii

8 gutters, street lighting, utilities and systems for water supply, sewage disposal and drainage. Right-of-Way: A corridor of land dedicated or acquired to allow construction and maintenance of a private or public travel way or utility line. Subdivision: A division of land or land so divided which creates one or more parcels containing less than 160 acres, exclusive of public roadways, in order that the title to or possession of the parcels may be sold, rented, leased or otherwise conveyed, and will include any re-subdivision; and will further include any condominium or area, regardless of its size, which provides or will provide multiple space for recreational camping vehicles, or mobile homes. A subdivision will comprise only those parcels less than 160 acres which have been segregated from the original tract, and the plat thereof will show all such parcels whether contiguous or not. Provided, however, condominiums constructed on land divided in compliance with the Montana Subdivision Platting Act are exempt from the provisions of the act. Subdivision Regulations (Broadwater County): Regulations adopted by Broadwater County pursuant to state statute Title 76, Chapter 3, MCA, to regulate the division of land into subdivision lots, certain condominiums, mobile home parks and recreational vehicle parks (see definition of subdivision above). Tract: Any separately defined property. Wildland/Urban Interface: Borders of forest and/or woodland areas being settled by people desiring to live in rural, wooded settings. Zoning: Regulations adopted by local governing bodies to designate appropriate locations of various land uses and regulate the character or quality of new development. Montana law prohibits land use regulations that regulate the production of agricultural or forestry products. iv

9 SECTION I BACKGROUND This Broadwater County Growth Policy Plan/Comprehensive Economic Development Strategy (Plan/CEDS) is an integrated document that complies with the Montana statutory requirements for a growth policy and the U.S. Economic Development Administration requirements for a comprehensive economic development strategy. This integration of traditional county planning with economic development planning into a single document is unique in Montana. The hope and expectation of integrating growth management policies with economic development strategies will avoid, or at least minimize, conflicts between fostering growth and managing growth. Broadwater County has been facing substantial growth since the 1980's. Growth pressures from a growing Helena affect the north end of Broadwater County; growth in Three Forks/Gallatin County is impacting the south end of the county; private lands in Deep Creek, west slopes of the Big Belt Mountains, Canyon Ferry/Missouri River and the east slope of the Elkhorn Mountains have amenities that typically attract growth. Despite residential growth, Broadwater County suffers depressed agricultural prices and a general economy as does the rest of Montana. Several communities in the county need revitalizing. In 2000, Broadwater County experienced serious wildfires that burned thousands of acres. Residents in virtually all of the county are affected by either growth pressures, deteriorated communities or a stressed economy, and therefore would benefit from policies and actions recommended by a growth policy plan. The 5 th and 14 th Amendments to the U.S. Constitution, and Article II, Section 29 of the Montana Constitution, with the subsequent decisions by the respective supreme courts, provide Montanans with resolute protection of private property rights. This Broadwater County Growth Policy Plan/CEDS is drafted recognizing those rights. The Broadwater County Planning Board and the Broadwater County Development Corporation took the lead in developing drafts of this Plan/CEDS. The county conducted a county-wide citizens opinion survey, and held many public meetings throughout the county and during the planning process. Many citizens and organizations contributed to the drafting of this Broadwater County Growth Policy Plan/Comprehensive Economic Development Strategy, adopted by the Broadwater County Commissioners. 1

10 A. HISTORY OF BROADWATER COUNTY Prior to the Lewis and Clark expedition in 1805, the Broadwater valley was a hunting and camping ground for Crow, Blackfeet, Shoshone and other Indian tribes. The Lewis and Clark Corps of Discovery expedition traveled up the Missouri River through what is now Broadwater County. Lewis and Clark and other early explorers described the valley as a wide valley, harboring great numbers of antelope and being rich in both wildlife and beauty. The valley contains productive soils and abundant water, but the surrounding mountains intrigued early settlers because of the wealth provided by minerals, especially gold, and the supply of timber. The first gold discovery was made in the winter of 1864 ( the year the Four Georgians discovered gold at Last chance Gulch in Helena) along Confederate Gulch in the Big Belt Mountains. That gold discovery created the establishment of a gold boom town, Diamond City. During the 33 years after the discovery in Confederate Gulch, gold drew many people to the Broadwater County area. In addition to Diamond City, many new towns such as Placer, Iron Age City, Canton, Beat em and Cheat Em would come and go as new gold mines were worked and depleted. Broadwater County, named for Colonel Charles Broadwater, was made an official county by the Montana Legislature in It was formed by removing territory from four of the first counties in Montana. The largest segment was taken from Jefferson and Meagher Counties, which at the time had the Missouri River as their common boundary. Small sections were removed from Lewis and Clark County to the north and Gallatin County to the south. The current boundaries of Broadwater County are roughly defined by the Big Belt Mountains to the east and north, the Elkhorn Mountains to the west, and the Horseshoe Hills to the south. The railroad played an important role in the history of Broadwater County. With the building of the Northern Pacific Railway in 1881, an old stage stop, Centerville, was moved to a site adjoining the railroad and was renamed Townsend. This new location, often referred to then as Township #7, became the commercial center for the new county, and was soon established as the county seat. Townsend was named in honor of the wife a railroad official Charles B. Wright, whose maiden name was Townsend. A land agent for the railroad platted city streets in 1882, and homesite lots were offered for $300 each. By 1883, Townsend had a post office, stores, a hotel, restaurant, stables, saloons, churches, a flour mill, a school, a lumber mill, and even an indoor ice-skating rink. Most of the Townsend s early downtown was built during the short period of 1882 to

11 Two of the major structures were railroad businesses - the Townsend House Hotel and the W. E. Tierney Company store- both located on the corners of Broadway and Cedar Streets. Townsend grew rapidly in the late 1800's and early 1900's because of its location surrounded by mining, logging, farming and ranching, and because of the transportation of products by the Northern Pacific Railway. In 1889 the Commercial Hotel was built by William Pierce, who sold the hotel to the C.D. W. Smith family in The hotel later closed, but the bar still operates at the corner of Broadway and Front Street. Mining of new mineral discoveries, including silver, copper, and zinc greatly increased the demand for local goods and services. The rising population of people inmigrating because of mining created an increasing need for agricultural products. Cattle drives were made to Broadwater County, and later livestock became a significant local industry, eventually becoming as important as the mining industry itself. As mineral deposits were depleted, the mining industry began to slow and mining became less profitable during the early 1900's. In 1982, a limestone mine was constructed in the Elkhorns west of Townsend, and a lime processing plant was built nearby. The mine and plant continue to operate today, providing jobs and basic income to Broadwater County. As the hard rock mining industry declined in the early 1900's, many miners turned to farming and ranching, and agriculture became the principal industry in the county. The agricultural industry remained stable until approximately 1906, when various federal agencies expanded the development of natural resources in the state. The land that was most desirable was homesteaded in 160 acre parcels beginning in In 1913 Congress increased the size of homesteads to 320 acres. Most of the homesteads under cultivation occurred between 1909 and the 1950's, primarily in the southern part of the county Winter and spring wheat, sugar beets, hay, and livestock became the principal agricultural products. More recently, potatoes have replaced sugar beets as an important crop in Broadwater County. Also, Wheat Montana, a bakery firm known throughout Montana, uses locally grown wheat and grain. Development of irrigation systems greatly increased the yields of crop and livestock production and have proven to be vital to the agricultural industry over the years in Broadwater County. The Montana Ditch, constructed in 1900, continues to provide 3

12 irrigation water to farms and ranches in the valley. In 1939, the Broadwater-Missouri dam and canal system were built above the community of Toston to provide irrigation water to the central portion of the county. In the 1950's the U.S. Bureau of Reclamation constructed Canyon Ferry Dam just north of Broadwater County for power generation and irrigation. The resulting reservoir, Canyon Ferry Lake, has become a major feature of Broadwater County. Canyon Ferry Lake covers 35,000 acres. Approximately 5,000 acres of productive agricultural land was inundated by the reservoir. As restitution, the Bureau of Reclamation created the Crow Creek Pump Unit, an irrigation development with a series of canals, ditches and pumps to provide irrigation water to other lands within the valley. Hunting, fishing and recreation have a long history in Broadwater County, and the county is developing a strong recreation/travel industry. The Broadwater Rod and Gun Club was formed in 1902 to influence fish and game management in the area. The Club facilitated planting of pheasants and trout in the valley. They also planted 36 head of elk up Dry Creek in 1916, which established a successful elk population in the Big Belt Mountains. In addition to generating electric power and providing irrigation water, Canyon Ferry Lake provides recreation opportunities of state-wide significance. Lake fishing, ice fishing, boating, camping, and picnicking are major recreation activities associated with the reservoir, and has contributed to the basic travel and tourism economy of the county. In the 1970's, the U.S. Bureau of Reclamation constructed dust-control ponds on the south end of the reservoir near Townsend. In cooperation with the Montana Department of Fish, Wildlife and Parks (FWP), the dust-control ponds are also managed to facilitate waterfowl nesting, which has resulted in excellent, productive habitat for ducks, geese and many shorebirds. The adjacent FWP Wildlife Management Area complements the waterfowl habitat and provides outstanding hunting for big game, pheasants and waterfowl, as well as opportunities for watching and photographing wildlife. Canyon Ferry Lake and the Missouri River have developed a reputation as high quality fisheries. Canyon Ferry Lake, the Missouri River from Three Forks to Townsend, Helena National Forest, Big Belt Mountains, Elkhorn Mountains, and numerous streams and lakes, and a rich history are amenities that drive a strong recreation and tourist industry. 4

13 History of Past Development Efforts The following is a brief outline of past development efforts by Townsend and Broadwater County: City swimming pool constructed Softball park constructed County planning board formed to review subdivisions A major street paving project City tennis courts constructed A new sewer lift station installed Airport improvements begin City fire hall constructed in 1986 Broadwater Health Center completed Broadwater County Development Corporation reactivated A 9-hole golf course completed ; grass greens added Broadwater County and City of Townsend become Certified Communities through the Montana Department of Commerce; recertified Broadwater County secures a Department of Commerce Economic Development grant to assist start-up business, Broadwater Printing City of Townsend receives CDBG grant to make improvements to wastewater treatment plant Townsend School District completes a new high school, funded by a voter-approved bond issue Front Street is reconstructed Bike paths and ponds are constructed at Indian Road campground B. GENERAL DESCRIPTION OF THE AREA Broadwater County is located in southwest Montana. It is bordered on the north by Lewis and Clark County, on the east by Meagher County, on the south by Gallatin County, and on the west by Jefferson County. The County includes 1,245 square miles. The county is mountainous with expansive valley areas that are used for agriculture. Elevations range from 9472' on the top of Mount Baldy to the average valley elevation of 3800'. The Big Belt Mountains run along the eastern border, and the Elkhorn Mountains form the western boundary. The Missouri River flows through the county from south to north, offering both irrigation for crops and recreational opportunities. Canyon Ferry Lake covers 5

14 approximately 35,000 acres in the northern part of the county. The lake shore is federally owned, managed by the U.S. Bureau of Reclamation. TABLE 1. LAND USE AND LAND OWNERSHIP IN BROADWATER COUNTY Acres Broadwater County 796,00 LAND USE Private Lands Dry Crop Land 77,000 Private Timberland 35,000 Grazing land 326,000 Irrigated 46,000 Other (e.g. urban, utilities) 20, ,000 Public Lands State 24,500 Federal 257, ,000 LAND OWNERSHIP Acres Percent Private Lands 515,000 65% Public Lands U.S. Forest Service 185,000 23% U.S. Bureau of Land Management 64,000 8% U.S. Bureau of Reclamation 8,000 1% MT State Trust Lands 24,335 3% MT Dept Fish Wildlife and Parks 165 Source: U.S. Bureau of Census, Census of Agriculture The 515,000 acres of private land in Broadwater county is 65% of the total 796,800 acres. The climate of the county is consistent with normals for the Rocky Mountain region. The winters are cold with temperatures dropping to less than 30 degrees below zero for a week at a time. The summers are warm with a number of days in excess of 95 degrees. Extreme fluctuations in temperatures, wind, and precipitation intensity are common. The annual precipitation is 12". The growing season ranges from frost free days. 6

15 Townsend is the only incorporated city in Broadwater County. communities include Radersburg, Toston, and Winston. C. POPULATION Unincorporated The 2000 Census shows that Broadwater County s population was 4,385. Of those persons, 1,867 live in the City of Townsend. Broadwater County s population has grown substantially since 1970, from 2,500 to nearly 4,400. The county experienced a significant increase during the 1990's of 1,067 people. That increase from 3,318 to 4,385 was 32%, third highest in Montana, behind Ravalli and Gallatin counties. Townsend has grown steadily since 1970, and grew by 14% between 1990 and

16 TABLE 3. POPULATION OF BROADWATER COUNTY AND TOWNSEND Broadwater County City of Townsend ,526 1, ,267 1, ,318 1, ,385 1,867 Source: U.S. Bureau of Census The following table shows the break down of the Broadwater County population by age groups from the 2000 census, and shows the percentages for Montana as a comparison. TABLE 4. BROADWATER COUNTY POPULATION, PERCENTAGE BY AGE; MONTANA PERCENTAGE, Broadwater County-- Montana No. Percent Percent Under 5 years 234 5% 6% 5 to 14 years % 15% 15 to 24 years % 15% 25 to 44 years 1,149 26% 27% 45 to 54 years % 15% 55 to 59 years 272 6% 5% 60 to 64 years 233 5% 4% 65 and older % 13% Percent under 18 25% 25% Percent 65 and older 16% 13% Median Age 41 years 38 years Source: U.S. Census; Montana Department of Commerce 8

17 Table 4 shows that in comparison to Montana, Broadwater County has an older population. Broadwater County has a higher percentage of people 65 and older (16% compared to 13% for Montana), and the median age of 41 years for Broadwater compared to 38 years for Montana. Population and Employment Projections The table below shows baseline projections for total population and total employment in Broadwater County. Baseline projections assume that no unusual event occurs that would cause a significant increase or decrease in population or employment. TABLE 5. PROJECTED EMPLOYMENT (Full and Part time) AND POPULATION Total Population 4,385 4,700 5,000 Total Employment ,300 2,500 Source: Jim E. Richard, Business Services, Inc. Broadwater County Planning Board 9

18 D. THE ECONOMY Broadwater County s economy, like any local economy, is a result of three factors: 1) Money coming into the county from the out-of-county sale of goods and services; 2) The extent to which those in-coming dollars are spent in Broadwater County for local goods and services; 3) Money leaving Broadwater County spent on goods and services outside the county. Basic (or primary) industries are those economic sectors that bring income from outside into the county, primarily through the sales of goods or services to out-of-county purchasers. Secondary (or derivative) sectors are those that sell local goods and services purchased as a result of subsequent spending of basic income within the county. Secondary industries principally serve the local population. Income from sale of agriculture, forestry, mining, and manufacturing products is basic income because these products are sold out-of-county (Even if a basic product is sold within the county, the income is still considered basic income because the sale replaces a purchase the buyer would otherwise have made out-of-county). The heavy construction and public utilities industries and federal and state government are considered basic sectors because the wages to pay the employees are generated out-of-county. Travel/tourism is considered a basic industry because it brings in income from out-ofcounty travelers. The secondary sectors include retail and wholesale trade, services, building contractors, finance, insurance, real estate and local government. These are secondary sectors because they serve the local population and are supported by the spending of basic sector income. Out-of-county travelers, recreationists and tourists purchase goods and services provided by the retail and service sectors. Therefore that portion of the income and jobs in the retail and service sectors must be considered basic because the sales come from out-of county. No clear method exists to estimate the amount of sales or number of jobs in retail and service jobs that are generated by travel/tourism. Motels, hotels, guides and outfitters, and guest ranches serve almost exclusively out-of-county persons, and thus clearly are basic industries. Retail stores and eating and drinking establishments receive some portion of their income from out-of-county patrons. 10

19 A county s economy is strengthened when (1) income from basic industries increases, (2) sales of local goods and services increases, and (3) less money is spent for out-of-county goods and services. 1) Earnings; Personal Income Earnings within a county comprise: 1. Wages, salaries, and other spending on labor 2. Net income of proprietors Personal income is a measure of all revenues received in a county. Personal income is the total income derived from: 1. Earnings (wages, salaries, other labor, and net income of proprietors) 2. Income from rents, dividends, interest 3. Government transfer payments Transfer payments in Broadwater County totaled $17,296, 000 in Of those payments, $16, 427,000 were government payments to individuals. Approximately 53% ($8,655,000) of the government payments were retirement payments to individuals in the county. 11

20 TABLE 6. PERSONAL INCOME, EARNINGS BY INDUSTRY: BROADWATER COUNTY, 2000 Basic Industries EARNINGS PERCENT OF ALL INDUSTRIES Agriculture $5,472,000 12% Mining 4,871,000 11% Heavy Construction 660,000 1% Manufacturing 9,310,000 21% Tran,Comm,PubUtil** 1,904,000 4% Travel/tourism 1,210,000 3% Federal Government 2,860,000 6% State Government 450,000 1% Total Basic Industries $26,743,000 59% Secondary Industries Wholesale $1,096,000 2% Retail Trade 1,460,000 3% Private Services 5,520,000 12% Tran,Comm,PubUtil** 1,276,000 3% General Construction 2,300,000 5% F. I. R.E.*** 1,728,000 4% Agricultural Services 470,000 1% Local Government 4,553,000 10% Total Secondary Industries $18,403,000 41% Total Earnings: $45,146,000 Transfer Payments**** $17,296,000 Rents, Dividends, Interest $18,854,000 Total Personal Income: $81,296, ** Transportation, Communications, Public Utilities *** Finance, Insurance, Real Estate **** Transfer payments include non-agricultural federal and state payments to local governments, individual and non-profit organizations; payments include food stamps, AFDC, Medicare, Social Security, Veterans, unemployment insurance, retirement and disability, education and training. Sources: Bureau of Economic Analysis, U.S. Census Bureau Montana Department of Labor and Industry Jim E. Richard, Business Services, Inc (2) Employment 12

21 TABLE 7. ESTIMATED FULL-TIME AND PART-TIME EMPLOYMENT BY ECONOMIC SECTOR, BROADWATER COUNTY, 2000 BASIC NUMBER PERCENT OF INDUSTRIES OF JOBS ALL JOBS Agriculture % Mining 90 4% Travel, Tourism 70 3% Manufacturing % Transp/Pub Utilities 60 3% Heavy Construction 20 1% Federal Government 75 4% State Government 15 1% Total Basic Jobs 1,020 49% SECONDARY INDUSTRIES Transp/Pub Utilities 20 1% Private services % Retail Businesses % Wholesale 60 3% General Construction 100 5% F.I.R.E.** 95 5% Agricultural Services 60 3% Local Government*** 180 9% Total Secondary Jobs 1,080 51% Total Jobs: Broadwater County 2,100 ** Finance, Insurance, Real Estate *** Includes schools Sources: Research and Analysis Bureau, U.S. Census Bureau Montana Department of Labor and Industry Jim Richard, Business Services, Inc. Table 6 shows that among the basic industries in Broadwater County, manufacturing is the largest sector, generating $9.3 million in earnings, or 21% among all economic sectors (35% of basic industries). R-Y Timber, GrayMont Western US, Inc, and Wheat Montana are the three principal 13

22 manufacturing/processing firms in the county. Agriculture is the second largest basic industry, producing $5.4 million in earnings (12%). Mining, third largest basic industry, generates $4.8 million, or 11% of all economic sectors. The services industry is the dominant economic sector among the secondary industries, generating $5.5 million in earnings, or 12% of all sectors. Table 7 above shows that Broadwater County has a total of 2,100 full-time and part-time jobs. The estimated current population of the county is 4,385 persons, which means that there is approximately 1 job for every 2 persons living in the county. Table 7 shows the number of jobs, not employees, so the table reflects the fact that a number of persons work at two or more jobs. Table 7 also shows the estimated number of employees in each economic sector and that basic industries employ 1,020 employees and the secondary industries employ 1,080. The ratio of secondary jobs to basic jobs in 1999 is 1:1.06, or nearly 1:1., that is, each basic job supports one secondary job. As with earnings, manufacturing employment is largest of the economic sectors (18%) and is the largest of the basic industries - 36%. Agriculture is the second largest basic sector, 20% of basic industry earnings, and 31% of basic industry jobs. The difference between agriculture s share of basic industry earnings and basic industry jobs is due in part to the fact that agriculture jobs are lower paying and agriculture is more labor intensive than manufacturing. Mining constitutes 18% of basic industry earnings but only 9% of basic industry jobs. This difference reflects that mining is capital intensive rather than labor intensive. Among the secondary sectors, services is the largest sector with 16% of all jobs. Retail trade generates 11% of all jobs in Broadwater County, but only 3% of the total earnings, reflecting the labor intensive nature of the sector, and that jobs are of low wage. 14

23 TABLE 8. PERCENT EMPLOYMENT AND EARNINGS BY INDUSTRY, BROADWATER COUNTY AND MONTANA, 2000 EMPLOYMENT BY INDUSTRY EARNINGS BY INDUSTRY Broadwater County Montana Broadwater County Montana Industry Number Percent Percent Amount Percent Percent ($000s) Agriculture % 6% $5,472 12% 2% Agri Services/Forestry 60 3% 2% 472 1% 1% Mining 90 4% 1% 4,871 11% 2% Construction 125 6% 6% 2,963 7% 7% Manufacturing % 5% 9,310 21% 7% Transp/Pub Utilities 80 4% 5% 3,162 7% 8% Wholesale Trade 55 3% 4% 1,096 2% 5% Retail Trade % 19% 2,011 4% 11% F.I.R.E.* 95 5% 7% 1,728 4% 6% Services % 31% 6,199 14% 28% Federal Government 75 4% 4% 2,860 6% 8% State Government 15 1% 4% 450 1% 6% Local Government** 180 9% 7% 4,553 10% 9% % 100% $45, % 100% * Finance, Insurance, Real Estate ** Includes schools Sources: MT Dept of Commerce/Research and Analysis Bureau, U.S. Census Bureau In Table 8 above, which compares Broadwater County s earnings and employment with that of the state of Montana, several aspects stand out. Manufacturing (primarily wood products) generates 21% of Broadwater County s earnings, but accounts for only 7% of Montana s total earnings. Mining and agriculture each account for 11-12% of earnings in Broadwater County but only 2% of Montana s earnings. On the other hand, the services sector generate 28% of the earnings in Montana, but only 14% in Broadwater County. Retail trade accounts for 11% of total earnings in Montana, but only generates 4% of the earnings in Broadwater County. Broadwater County s largest industries are based on natural resources, while Montana s largest industries are the services/retail sectors. 15

24 E. LOCAL GOVERNMENT FINANCE Each real and personal property in Montana is classified into one of a number of different property tax classifications. Each property is given an assessed value. The Montana legislature sets a tax rate for each tax classification, and that tax rate is multiplied by the assessed value of the property to obtain the property s taxable value. Units of local government (e.g., cities, counties, school districts) levy mill levies against the taxable value of the properties within their jurisdiction to generate property tax revenues. Broadwater County had a total property taxable valuation of $10,254,000 in As can be seen from Table 9 below, utilities/railroads are the largest contributor to the county property tax base with $3.7 million in taxable valuation. This is largely because of a privately-owned electric power transmission line that crosses Broadwater County from east to west, and the mainline of the Montana RailLink railroad located in the county. Residential property is the second largest contributor to the county property tax base; agriculture the third largest. The effect of Montana s property tax policies emerges in Table 9. The total market value of residential property in Broadwater County is $75 million, but its taxable value is $2.7 million. In contrast, the market value of utilities is $28 million, but their taxable value is $3.1 million. Under Montana law, utilities have a tax rate of 12%, while residential, commercial, industrial, and agricultural properties have a tax rate of 3.6% or less. TABLE 9: MAJOR CLASSES OF TAXABLE VALUATION, BROADWATER COUNTY, 2000 Percent of Type of Property (Tax rate) Taxable Value Taxable Value Assessed Value Utilities (12%) $3,122,000 30% $28,029,000 Residential (3.6%) 2,690,000 26% 75,057,000 Agriculture (3-3.6%) 1,450,000 14% 42,663,000 Mining 811,000 8% 22,455,000 Commercial/Industrial (3.6%) 626,000 6% 17,696,000 Railroad (4.27%) 614,000 6% 13,641,000 Telecommunications (6%) 579,000 6% 9,651,000 Other 371,000 4% 38,214,000 Total $10,254, % $224,716,000 Source: Montana Dept of Revenue 16

25 The City of Townsend, the only incorporated municipality, had a taxable valuation of $1,652,600 in Broadwater County Budget and Revenue Sources The Broadwater County budget for annual expenditures and revenues varies every year. First, the needs and costs of county offices, boards, and districts changes from year to year for reasons such as population changes, new state or federal requirements, and changing desires of county residents. Second, the Montana legislature changes tax rates and available state grants to local government, and federal programs for local government are frequently changed. Therefore the budget and mill levies in any one fiscal year will not necessarily be the same for another fiscal year. Table 10 below shows the (rounded) budgeted expenditures and mill levies for fiscal year , which is representative of Broadwater County s annual budgets. The budgeted expenditures include the expected costs and cash reserves for the various departments, boards and districts. Tax and other revenues often are received by the county only several times throughout the year. Cash reserves are carried by local governments to ensure that cash is available for paying bills during periods between receipt of tax and other revenues. 17

26 TABLE 10. ANNUAL BUDGET AND MILL LEVIES FOR BROADWATER COUNTY DEPARTMENTS, BOARDS, AND DISTRICTS, EXPENDITURES MILL LEVIES General Fund $1, Poor Fund (Welfare) 23,000 1 Road/Bridge 540, Weed Board District Court 180,000 1 Extension 30, Fair 40, Public Safety 660, Rural Fire District 275,000 8 Hospital 385, Planning Board 90,000.5 Senior Citizens 24,000 1 Museum 14,000 1 Library 42, Airport Board 13,000.4 Health Insurance 125, Solid Waste District 415,000 Other 727, $4,900,

27 Table 11 below shows the revenue sources that fund the Broadwater County budget. Property taxes, state and federal agency payments in lieu of taxes (PILT), state and federal grants, fees, fines and charges, and cash on hand are the major sources of revenues. The Other category includes many different sources such as assessments and receipts from interest, rents, and licenses. Cash on hand is the unexpended, unencumbered money carried over from the previous fiscal year in the many different budget line items among the various departments. boards, and districts. TABLE 11. REVENUE SOURCES, BROADWATER COUNTY, 2000 Property Taxes $1,325,000 Cash on Hand 1,800,000 Gov t Transfers 525,000 PILT 195,000 Fees, Fines 165,000 Other 890,000 $4,900,000 Residents of Broadwater County pay property taxes to a number of units of local government through mill levies. Table 12 below shows that property owners in the unincorporated area of Broadwater County pay 248 mills levied county-wide on all private properties, plus 127 mills levied by the Broadwater County Public School District on properties within the District, which includes most of Broadwater County (a small portion of the Three Forks School District lies in Broadwater County and property owners in that district pay different school district mill levies). Table 12 and the bar graph show three categories of mill levies. County Government includes the 134 mills that Broadwater County levies to fund county departments, boards and districts. County Education are county-wide levies that include a 6 mill levy for the state University System and 108 mills in levies to help fund elementary and high school transportation and teachers retirement. School District is the 127 mill levy that the Broadwater County high school and elementary school district levies to help fund education costs incurred by the district for grades K-12 education. 19

28 TABLE 12. COUNTY-WIDE PROPERTY TAX MILL LEVIES, BROADWATER COUNTY, 2000 Mills Percent County Government % County: Education % School District % % 20

29 F. AGRICULTURE IN BROADWATER COUNTY Table 12 below shows the number of farms/ranches, total acres and average size of farms/ranches in Broadwater County. The trend in Broadwater County is different than in most counties, where farm and ranch units tend to become larger and the number of units decreases. In Broadwater, the number of farms and ranches has increased slightly and the average size has decreased. The number of acres in farms and ranches decreased from 1987 to 1992, but increased from 1992 to Basically, the 10- year change from 1987 to 1997 shows that the number and size of farms was very stable. TABLE 12. NUMBER OF FARMS, TOTAL ACRES, AVERAGE SIZE IN BROADWATER COUNTY No. of Acres in Avg size Farms/ranches Farms/ranches of Farms/ranches ,700 2, ,970 2, ,800 2,150 Source: Census of Agriculture TABLE 13. BROADWATER COUNTY CROPS: ACRES AND PRODUCTION, 1990, 1995, Hay (tons) Wheat (bushels) Barley (bushels) Oats (bushels) Potatoes (100-weight) Total All Crops Acres 20,000 43,600 4, ,600 70,400 Irrigated acres 18,500 14,100 2, ,600 36,800 Production 59,000 1,528, , ,000 2,357,000 Irrigated production 57, , , ,000 1,721,500 % Irrigated Production 97% 64% 77% 100% 73% 1995 Acres 27,500 42,700 9, ,450 Irrigated acres 25,000 16,000 4,300 N/A ,950 Production 90,400 2,031, ,000 31, ,000 2,917,400 Irrigated production 86,000 1,035, ,000 N/A 202,000 1,648,000 % Irrigated Production 95% 51% 58% 100% 56% 1990 Acres 29,000 44,100 15, ,400 Irrigated acres 24,500 13,900 7, ,000 Production 91,000 1,359, ,000 30, ,700 2,309,700 Irrigated Production 85, , ,000 28, ,700 1,582,700 % Irrigated Production 93% 58% 79% 93% 100% 69% Source: Montana Agricultural Statistics, MT Dept of Agriculture TABLE 14. NUMBERS OF LIVESTOCK, 1990, 1995,

30 Cattle 24,500 24,700 22,400 Sheep 7,100 6,100 4,400 Hogs 1,400 1, Source: Montana Agricultural Statistics, MT Dept of Agriculture TABLE 15 AGRICULTURAL CASH RECEIPTS, 1990, 1995, 2000 Percent of 2000 Livestock; products $ 9,648,000 $7,000,000 $6,102,000 35% Crops* 6,647,000 10,844,000 11,404,000 65% Total Cash Receipts 16,295,000 17,844,000 17,506, % Government payments 3,515,000 1,821,000 4,756, Total Cash Receipts $19,810,000 $19,665,000 $22,262,000 *includes hay Source: Montana Agricultural Statistics, MT Dept of Agriculture Table 14 above shows that the number of livestock in Broadwater County has declined since Table 15 shows the total agricultural gross cash receipts from livestock, crops and government payments for 1990, 1995, and 2000 in Broadwater County. Crop production and sales accounted for 65% of the agricultural income in Broadwater County in Year Between 1990 and 2000 livestock receipts declined by $3.5 million, or approximately onethird. Government payments were almost one-half of the 1990 payments in 1995, but exceeded 1990 payments in The total agricultural gross income has increased steadily by $2.4 million between 1990 and TABLE 16 ACRES, PRODUCTION, CASH RECEIPTS, TOTAL AND IRRIGATED, BY CROP,

31 Hay Wheat Barley Potatoes Total Cash Year (tons) (bushels) (bushels) (100-weight) Receipts 2000 Total Acres 20,000 43,600 4,600 1,600 Irrigated Acres 18,500 14,100 2,600 1,600 Total Production 59,000 1,528, , ,000 Irrigated Production 57, , , ,000 Total Cash Receipts $5,044,500 $4,614,560 $559,300 $2,944,000 $13,162,360 Cash Receipts, Irrigated Acres $4,916,250 $2,932,420 $430,780 $2,944,000 $11,223,450 85% Source: Montana Agricultural Statistics, MT Dept of Agriculture TABLE 17. MARKET VALUE, TAXABLE VALUE OF AGRICULTURAL PROPERTY, 2000 Market Taxable Percent of Acres Percent Value Value Agricultural Range land 327,000 73% $ 6,843,800 $248,000 17% Dry Cropland 76,000 17% 10,595, ,000 26% Irrigated land 45,300 10% 11,088, ,000 28% Livestock 6,000, ,000 12% Farm Machinery 7,868, ,000 16% $42,394,800 $1,450, % Source: MT Department of Revenue Tables 13, 16, and 17 show the importance of irrigated lands to Broadwater County. Table 13 shows, for years 1990, 1995, 2000, the acres and production of cropland by crop, and the acres and production of irrigated lands. In 2000, 52% of the county s cropland was irrigated and 73% of the crop production was on irrigated lands. Table 16 shows that 85% of the total cash receipts for harvested crops was generated by irrigated acres. Table 17 shows the contribution of irrigated lands to the Broadwater County property tax base. The table presents the taxable value of the various components of agricultural property. Irrigated land constitutes only 10% of the total agricultural acreage, but represents 39% of the taxable valuation of all agricultural acreage. Irrigated lands generate 28% of the total taxable value of agricultural property. During the 10-year period from 1990 to 2000, Broadwater County s population grew by 1,100 people. Most of that increase occurred in the rural areas of the county, but nearly all of the growth has been located on marginally productive agricultural land, with a minimum occurring on irrigated lands. Agricultural Water Resources: Broadwater County is fortunate in having abundant water resources (by Montana standards) 23

32 which makes irrigated crop land a major factor in the county s agricultural economy. Water is obtained from both surface water diversions and from groundwater development. The Missouri River, which flows south to north through the county, is the key surface water. Toston Dam on the Missouri, located approximately four miles south of the community of Toston, provides water for the Broadwater Missouri Diversion Project. This project furnishes water to irrigate crop lands along both sides of the river through two canals. The west side canal is 15 miles in length, running northwest of Toston. The east side canal passes to the east of Townsend, and continues up the east side of Canyon Ferry Lake, ending at Duck Creek. Total length of the east side canal is 35 miles. Together the two canals irrigate approximately 22,000 acres. Big Spring Ditch flows out of Big Spring south of Toston, running six miles and ending at Dry Creek. The canal irrigates 2,200 acres. Another surface water diversion from the Missouri River is the Montana Ditch. Its point of diversion is on the east bank of the river about two miles south of Townsend. It carries water to the east of Townsend and flows into Canyon Ferry Lake seven miles north of Townsend. Construction of Canyon Ferry Dam caused innundation of substantial acreage of prime agricultural land. To compensate for this loss the federal government constructed the Crow Creek Pump Unit. It lifts water from Toston Dam through a tunnel on the west bank of the canyon above the dam to irrigate lands southwest of Toston. Many of the smaller streams entering the valley are used for irrigation, particularly in the Radersburg-Toston area, around Winston, and along the east side of Canyon Ferry Lake. Agricultural Lands: Most of the new water development in the county has been for sprinkler irrigation. In addition, much of previously flood-irrigated lands have come under sprinkler irrigation. Sprinkler irrigation systems are more efficient than flood irrigation, thereby making water available to irrigate additional lands. (Sprinkler irrigation can affect ground water levels and quantities, aquifer recharge, and sub-irrigation.) Approximately 46,000 acres of crop land in Broadwater County are currently irrigated. Irrigated lands have and will most likely continue to be used for hay, pasture, wheat, barley and potatoes. Livestock production continues to be an important element in the economic base for the area. Although livestock sales income has fluctuated within the last few years, acreage devoted to raising cattle still plays an important role in the overall land use within the county. The majority of these lands are not under cultivation but are range lands, producing native vegetation for livestock grazing. Approximately two-thirds of the private land in the county is used for range. 24

33 G. WOOD PRODUCTS AND MINING INDUSTRIES IN BROADWATER COUNTY Wood Products Industry Table 17 below shows the earnings and employment for wood products industry, which includes timber harvesting, trucking, and processing in Broadwater County. The wood products industry in Broadwater County generates $8 million in earnings (18 % of the county total), and 260 jobs in lumber processing, logging and trucking (12 % of the county total). R-Y Timber, Inc., is the major timber processing firm in Broadwater County. R-Y Timber imports most of its raw logs from out of Broadwater County. TABLE 17. WOOD PRODUCTS INDUSTRY EARNINGS AND EMPLOYMENT IN BROADWATER COUNTY, Earnings Employment Wood Products Industry $8,000, Percent of County Total 18% 12% Sources: MT Dept of Commerce/Research and Analysis Bureau, U.S. Census Bureau Timber harvest in Broadwater County is shown in Table 18 below. During the 1990's, a total of 1.8 million board feet (mmbf) was harvested from the Helena National Forest in Broadwater County. One regular timber sale was harvested in , and a fire salvage sale and house log sale were harvested in During the 1990's approximately 24 mmbf of private timber were harvested in the county. That is a larger volume than the 18.5 mmbf of private timber that were harvested during the 1980's. In 2000, 5 million board feet of timber from private lands were harvested. 25

34 TABLE 18. TIMBER HARVEST IN BROADWATER COUNTY Level of Land Time Period Harvest Ownership ,800,000 bf National Forest 18,500,000 bf Private land ,000 bf National Forest 24,000,000 bf Private land ,300,000 bf National Forest* 5,000,000 bf Private land * Salvage harvest of burned timber in Toston-Maudlow fire and green logs felled as part of creating fire lines during that fire. Source: MT Department of Natural Resources and Conservation; Helena National Forest TABLE 19. ASSESSED AND TAXABLE PROPERTY VALUATION, AND PROPERTY TAX REVENUES GENERATED BY WOOD PRODUCTS PROCESSING FIRMS, Type of Property Assessed Value Taxable Value Tax Revenues Land/Improvements $ 904,000 $32,400 $12,500 Equipment 1,223,000 36,100 13,800 $2,127,000 $68,500 $26,300 Table 19 shows that the wood products industry contributes $68,000 in taxable valuation to the county tax base, and generates $26,300 in property tax revenues for Broadwater County, school districts and other local taxing jurisdictions. Mining Industry Two major mining firms operate in Broadwater County. Apollo Gold Corporation owns the Diamond Hill gold mine in the Elkhorns north of Townsend. GrayMont Western US, Inc., operates a lime mining and lime processing operation in the Elkhorn Mountains west of Townsend. Small scale mining operations occur sporadically on public and private land in the county. Table 20 below shows that mining provides 90 jobs in Broadwater County and generates $4.9 million in industry earnings. 26